Contracts for Difference (CFD) – Forex Economic Dictionary

ForexZig.comOctober 2, 2012

Economic Dictionary

Contracts for Difference (CFD)- these contracts allow their owners to take advantage of all benefits used by the owners of shares or indexes holders, without being necessary to own them physically. CFD could be described as a contract between the buyer and the seller, laying down the condition that the seller will pay to the buyer the difference between the current value of an asset and its value at specified time. If we have a negative difference, then the buyer pays instead to the seller.